Recession

Since last six month everyone is talking about global recession which started from America and affected our country India also. Our IT / BPO / KPO sector companies which are mostly dependent on West as they provide services to American MNC's are under stress due to fall in demand and credit crunch in USA.

If India wants to recover from the recession and economic slowdown and wants to become a independent nation then we should initiate ourselves towards the innovation and that too in villages. Pilot project related to Manufacturing/IT/Services/Sciences/Agriculture must be started in village where 60% to 70% population of India leaves. Not only it will help to remove unemployment but also gives more strength to our economy in long term. We should also try to create jobs for rural India by starting new projects based on R&D in villages. It is the only way to recover from Recession and save ourselves from future recessions.

Bailout Package in India

First bailout package by Indian Government is announced yesterday amounting to Rs.35000 crores. Package will reduce the prices of cars and other consumer products. Government reduced central Value Added Tax. Package is aimed to give boost to real estate, exports,  auto, textiles, other industries and highways. It should help generate jobs in the textiles sector, the largest employer among industries. Reserve Bank had already announced the cut in CRR (Cash Reserve Ratio) and Repo Rate.  Further the decision regarding the cut in petrol and diesel prices is likely to be announced soon. Industries also announced that all the tax benefit will be passe3d to consumers. Package is announced by Planning Commission deputy chairman Montek Singh Ahluwalia.

 

Did the announcement of package indicate that India is also under recession and affected by Global Financial Crisis. It means that in next year the India will be also under big stress like the USA.